Industrial Policy of India: Past, Present, Future

DOI: 10.20542/0131-2227-2023-67-12-71-81
V. Kondrat’ev, v.
Primakov National Research Institute of World Economy and International Relations, Russian Academy of Sciences (IMEMO), 23, Profsoyuznaya Str., Moscow, 117997, Russian Federation.
Primakov National Research Institute of World Economy and International Relations, Russian Academy of Sciences (IMEMO), 23, Profsoyuznaya Str., Moscow, 117997, Russian Federation.
G. Kedrova,
Primakov National Research Institute of World Economy and International Relations, Russian Academy of Sciences (IMEMO), 23, Profsoyuznaya Str., Moscow, 117997, Russian Federation.

Received 05.04.2023. Revised 11.05.2023. Accepted 14.06.2023.

Abstract. The new industrial policy which will replace the industrial policy of 1991 seeks to achieve One Nation – One Standard mission, to promote startups in every district, to create innovation zones at the local level, and to introduce incentives for Indian products by creating premium international brands. The current industrial policy also proposes to strengthen credit rating mechanism, industrial cluster financing models and make India attractive for investment. Sustainability, R&D, and ease of doing business for manufacturing are the basic areas of the country’s industrial vision. This will be the third industrial policy, after the first in 1956 and next in 1991. The Statement on Industrial Policy 2022–2023 also formulates a policy to enhance the quality of the Indian products by setting up a trade surveillance system, branding of “Made in India” products, and to bring national standard quality system closer to international practices. Foreign direct investment in R&D will be encouraged and the focus has to be on high value–added manufacturing activities. Micro, small and medium enterprises will be allowed to leverage the corporate bond market and their intellectual property rights be accepted as collateral for loans besides promoting shared economy models in critical areas like equipment leasing. New industrial and foreign trade policy confirm the government’s focus on self-reliance or Aatmanirbhar Bharat and it will play a critical role in facilitating India’s transition to an advanced developed economy during its Amrit Kaal (the period when it attains 100 years of Independence). India is targeting seven per cent growth in 2022–23, to cross it in the next five years and will try to stay in the 7–9 per cent range at least for a decade and a half. While inaugurating a new aircraft factory in Western India Prime Minister Narendra Modi returned to a slogan he came up a few months after taking power in 2014: “Make in India”. This time, however, he added: “Make for the world”.

Keywords: India, industrial policy, specifics of different stages, manufacturing, efficiency


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For citation:
Kondratev V., Popov V., Kedrova G. Industrial Policy of India: Past, Present, Future. World Eonomy and International Relations, 2023, vol. 67, no. 12, pp. 71-81. EDN: RBUBXE

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